On August 14, 1935 President Roosevelt signed Social Security into law, with the idea that it would “give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age”.
As it turns 78, has Social Security done what it was meant to do?
Not exactly. Today, there are 9 million seniors living in poverty despite Social Security. The program hasn’t shielded seniors from ‘poverty-ridden old age’, and it has failed at the expense of younger generations.
The program started running a cash flow deficit in 2010, and that gap widened to -$55 billion last year. It is projected to keep expanding, and will hit -$322 billion by 2032.